Disability Retirement

Accidental Disability

If a member is declared disabled as the result of an accident sustained while in the actual performance of duty, without willful negligence on his/her part, the member may be eligible for an accidental disability retirement allowance.

Upon retirement due to accidental disability, the member will receive a service retirement allowance, if eligible, or an accidental disability retirement allowance which is 65% of the member’s earnings for the twelve (12) months preceding the accident. The retirement allowance will be offset by any payments received from Workers’ Compensation.No survivor benefits will be payable upon the death of the member. The beneficiary may be entitled to a death benefit which consists of the remaining employee contributions and interest.

Ordinary Disability

If a member has at least ten (10) years of service and is declared disabled, he/she may be eligible for an ordinary disability retirement.

Upon retirement due to ordinary disability, the member will receive a service retirement if eligible or a disability benefit that will equal 75% of the service allowance that the member would have earned had he/she worked until age sixty-five (65). No survivor benefits will be payable upon t he death of the member. The beneficiary may be entitled to a death benefit which consists of the remaining employee contributions and interest.

Other Disability Retirement Information

Members will be required to undergo a medical examination once each year during the first five years after retirement and once every three years thereafter until age sixty (60). The results of the medical examination will be reported to NOMERS and the physician will certify the status of the member’s disability

Members considered able to pursue gainful employment will be restored to their previous position or a similar position.

A member’s benefit allowance will be discontinued if the member does not submit to the required medical examination or if the member is no longer disabled and declines suitable employment.

Disability retirees are required to report their income from other sources annually. Failure to comply with this requirement will result in the discontinuance of the member’s benefit allowance.

Survivor Benefits

The beneficiaries of active members with less than three years of service are eligible to receive a refund of the member’s contributions and interest in the event of the member’s death. If the member has three or more years of service at the date of death, the beneficiary will also receive an additional amount equal to 25% of the member’s preceding year’s base earnings plus 5% for each full year in excess of three (3) years. The additional amount is limited to 100% of the member’s salary for the previous year. The additional amount is not payable if the member’s death occurs before he/she obtains three (3) full years of service. See the “Ordinary Death Benefit Calculation” below.

Ordinary Death Benefit Calculation

Base Salary for year preceding death

$10,000.00

Number of years of service

10 years

Contributions and interest

$369.52

25% for 1st three (3) years of service

25%

5% for each year after 3 years (5% x 7)

35%

Total

60%

Base salary

$10,000.00

X 60%

$6,000.00

Plus contributions and interest

+ 369.52

Total Death Benefit

$6,369.52

A spouse named as the beneficiary of an active member may elect a lump sum benefit or an Option 2 allowance if the active member was eligible for a retirement allowance at the time of death. The allowance is based on years of service credit, compensation, the member’s age and the beneficiary’s age.

A spouse named as beneficiary of an active member who was age fifty-five (55) or older with ten (10) or more years and not eligible to retire at the time of death, may choose a lump-sum benefit or an actuarially reduced monthly benefit which ends when the spouse becomes eligible for Social Security benefits. Also, a spouse named as the beneficiary of an active member who was under age fifty-five (55) with at least twenty (20) years of service at the time of death may choose a lump-sum benefit or an actuarially reduced monthly benefit which ends when the spouse becomes eligible for Social Security benefits. The surviving spouse who elects the reduced monthly benefit shall not be entitled to a refund of the accumulated contributions of the deceased member nor the additional lump sum benefit.

Beneficiary Designation

Active members should ensure accurate, up-to-date beneficiary information is recorded in their files. Normally retirees may not change their designated beneficiary after retirement or after DROP participation begins. In the event of the death of the beneficiary the retiree may designate another beneficiary if the Maximum or Option I retirement allowance was selected. Although death benefits may be subject to estate taxes, in many cases death benefits can pass to beneficiaries free of any estate taxes. If the beneficiary predeceases the member, the death benefit will be paid to the member’s estate, which may also be subject to estate taxes.